Twenty blue chip German companies are pooling their resources with the aim of harnessing solar power in the deserts of north Africa and transporting the clean electricity to Europe.

The businesses, which include some of the biggest names in European energy, finance and manufacturing, will form a consortium next month. If successful, the highly ambitious plan could see Europe fuelled by solar energy within a decade.

The consortium behind what would be the biggest ever solar energy initiative will first raise awareness and interest among other investors for the project, known as Desertec, which is estimated to cost around €400bn (£338bn).